How has last year’s floods affected home insurance?

Last summer the UK experienced some of the worst cases of floods on record and many people lost their homes and businesses. The insurance industry had to pay out nearly £3 billion in claims and as such have been trying to come to an arrangement with the government to ensure this does not happen again.

The industry say they can not afford to pay out a similar sum again should those floods happen again and with flood warnings popping up around the UK, something needs to be done very soon. Many home owners have been priced out of insuring their house and belongings which is very worrying should the warnings come to fruition.

There is some good news for those who live in flood prone areas as the government and the Association of British Insurers (who represent 94% of UK insurers) have come to an agreement which means these areas will receive protection from these floods. This means finding home insurance at a competitive price should be easier for home-owners.

Despite the agreement, there are still areas that are considered to be high risk and as such, home owners will see an increase in their insurance premium as insurers look to minimise the risk of losing the same amount of money as last summer. Despite an increase in prices, the increase is only small with quotes averaging at £8 more than the previous year.

While some homeowners will struggle, those who are fortunate enough to obtain insurance should shop online for the best quotes as customers can compare the leading providers to find the best deals. Ensure you have sufficient cover when choosing your insurance deal, there are a wide range of policies that offer different cover. You need to have buildings insurance as this will protect you from damage to your house or business should the expected floods hit the UK.

Even though many people see home insurance as something they can live without, it only takes one unexpected incident to leave you with damage to your home and a hole in your wallet. Ensure you take out comprehensive insurance to cover you for all eventualities.

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The floods are expected to return so check your home insurance to ensure you have sufficient cover. Prices to vary depending on your area and risk but competitive insurance prices are available. Find the best deals on home and buildings insurance online and compare the leading providers.

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